Aug. 13, 2012: Nonresidential Construction Spending Expected to Be Up in 2012 and 2013
WASHINGTON — According to the American Institute of Architects (AIA) semi-annual Consensus Construction Forecast, a sharp spike in demand for industrial facilities so far this year, along with sustained demand for hotels and retail projects factors into what projects to be a 4.4 percent rise in spending this year for nonresidential construction projects, up from a projected 2.1 percent increase in the January forecast. The Consensus Construction Forecast, a survey of the nation’s leading construction forecasters, also projects a 6.2 percent increase in spending in 2013.
“With companies looking to bring back manufacturing jobs from overseas, there has been a sharp rise in demand for industrial facilities, which is leading to an upward revision in projections for future construction spending,” said AIA chief economist, Kermit Baker, Ph.D., Hon. AIA. “Continued budget shortfalls at the state and local level, along with a depressed municipal bond market are holding the institutional market back from seeing similar upticks in spending.”